Press Releases

The new National Bank RRSP Line of Credit: A simple and effective solution for retirement savings

Montreal, 25 January 2006 -

Maximizing your annual RRSP contribution can put a strain on your budget.  The new National Bank RRSP Line of Credit¹ offers an attractive and accessible solution to increase your RRSP contribution and invest additional tax-sheltered funds for retirement.

“Whether you’re topping up past unused contributions or increasing how much you invest in your RRSP over the year, the RRSP Line of Credit allows you to maximize your annual RRSP contribution, take advantage of the related tax deduction and get your money working for you tax-free sooner,” explains Jean Blouin, Vice-president – Credit and Investment Solutions of National Bank.  “Time is crucial when you’re investing, and using an RRSP Line of Credit can make a significant difference in how much you’ve saved by the time you retire.”

To demonstrate the difference, take an investor who contributes $250 a month ($3,000 a year) to an RRSP and has a marginal tax rate of 40%.  If he or she uses an RRSP Line of Credit to increase monthly payments from $250 to $416.66, the investor may have a larger income tax refund at the end of the year and be able to pay off the line of credit.  If your investor does the same thing over 20 years, he or she will have saved $193,893 as opposed to $116,338, assuming a 6% annual rate of return².

Designed exclusively for use with Registered Retirement Savings Plans, the National Bank RRSP Line of Credit offers very flexible use and payment terms.  Use it to contribute to your RRSP on a regular basis or when it is convenient.  The balance can also be paid off gradually or in a lump sum when you receive your income tax refund.

¹ Available subject to Bank credit approval.
² Data used here are for example purposes only.  Actual rates will vary.

About National Bank
National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has close to $108 billion in assets and, together with its subsidiaries, employs 16,890 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank’s website at

Information (The telephone number provided below is for the exclusive use of journalists and other media representatives):

Denis Dubé
Director – Public Relations Department
National Bank of Canada
Tel.: (514) 394-8644